KARACHI: The Sindh High Court (SHC) issued notices to the customs department and deputy attorney general on a constitutional petition filed by M/s 10Pearls against issuing of notice for recovery of Rs35,046,747 for tax year 2016-2017.
On Jan 19, 2019, a two-member bench, headed by Justice Aqeel Ahmed Abbasi was hearing the matter. Court also directed them to make sure filing their para-wise comments on next date of hearing.
During the hearing, counsel for the petitioner stated in his petition that petitioner is a registered company of Pakistan Software Export Board (PSEB) and Pakistan Software House Association (PASHA) having business relations in Washington DC, San Francisco, Toronto, Karachi, Dubai and Cebu. The petitioner is responsible for developing, designing and launching innovative digital software products.
He submitted that instant petition arises from an erroneous mala-fide and baseless series of proceedings initiated by the Additional Commissioner Inland Revenue, Audit Range-II, Zone-IV RTO Corporate Karachi which has culminated in a notice of recovery that listed the demand of Rs35,046,747 for the tax year 2016-17.
He argued that petitioner is aggrieved and seriously prejudiced by the proceedings, and has filed a relevant appeal before the CIR, Appeals-III. The petitioner said that their exempt status as an information technology service exporter has been disregarded.
Citing chairman Federal Board of Revenue, CIR Appeals-III and additional CIR, Audit Range-II Zone-IV as respondents, petitioner pleaded the court may declare that no demand or recovery of tax can be made or enforced by the officers of respondents prior to the final adjudication by at least one independent judicial forum outside the hierarchy of department.
Petitioner also pleaded the court to restrain them from any coercive action against the plaintiff for recovery of said amount.